How to Buy Long in Inverse Futures Contracts

How to gain profits through opening buy-long positions when the price goes up?

Suppose that you have 1 BTC and buy/long 10 BTC using 10X leverage in BTCUSD trading market. When the price of BTC rises from 15,000 USD to 16,000 USD, your PNL is calculated as follows:

10 * ( 16,000 - 15,000 ) = 10,000 USDT

If you use 1 BTC for spot trading, you can only make a profit of 1,000 USDT. However, when you make 10X leverage through futures trading, your profit will be increased by 10 times.

Position Amount Opening Price Closing Price PNL
10 BTC 15,000 USD 16,000 USD

The amount of BTC equivalent to 10,000 USD

Note: To simplify the calculation of the above process, the calculation of premium, margin profit and loss, transaction fees and capital fees are ignored.

 

Take Cross position with 10X leverage to buy long in the BTCUSD futures market as an example:

1. Enter the Futures trading page
(1) Visit CoinEx website, click [Futures] on the navigation bar, click [Inverse Contract] and select the Futures trading pairs.mceclip1.png

(2) After entering the contract trading page, select the contract trading market. mceclip2.png

2. Transfer assets to
Futures account
Click [Transfer], select [From Spot to Futures], select [BTC], enter the [Amount], and then click [Submit] to complete the transfer.mceclip3.png

3. Set the margin mode and adjust the leverage
Take Cross Margin mode and 10X leverage as an example:
Select [Cross Margin] mode and [10X] for leverage.________66794845-a999-4a8c-8b30-f148c13ed7d4____.png

4. Open a position/buy BTC at a lower price
Take limit order as an example:
(1) Set the [Price] and [Amount] in the BTCUSD contract market and click [Buy BTC] to complete the order.mceclip4.png(2) The buy/long will be completed when the order is executed, and you can view the  position details in the [Current Position].mceclip5.png

5. Close the position/sell BTC at a higher price when it rises to the expected price
(1) Method 1: Close positions in the order placement area.

Take limit order as an example here:
Set the [Price] and [Amount] in BTCUSD contract market and click [Sell BTC] to complete the order. When the order is executed, the position will be closed/sell.

Note: When closing a position through the order placement area, if you want to completely close the position, the order amount must be the same as the position amount. If it is greater than the position amount, the position will be held in the opposite direction after the order is executed. mceclip8.png

(2) Method 2: Close positions at the current position.
Take limit order as an example here:
Set the [Price] and [Amount] on the BTCUSD contract market, and then click [Close Position] to complete the delegation. When the order is executed, the close/sell will be completed.mceclip6.png

(3) Method 3: Use [Close All], [Take Profit or Stop Loss] to close positions.
When a position is closed by [Take Profit or Stop Loss], [Close All] on future trading, the closing order will be executed with the Auction-Style Liquidation Strategy.

6. Transfer assets to Spot account
Click [Transfer] on Futures trading page, select [From Futures to spot], select [BTC] coin, enter the [Amount], and then click [Submit] to complete the transfer.________9feda2b3-027f-49c2-8632-b473a29cd4c2____.png

 

Risk Reminder
Futures Contract Trading not only allows you to magnify gains with fewer funds, but can also saddle you with amplified losses, when the market moves against your prediction. Therefore, we strongly advise entry-level users NOT to use high-leveraged trading to avoid forced liquidation or even bankruptcy.

 


Related articles:

Risk Reminder

Future Contract FAQ

Future Contract Introduction

Index Price & Mark Price

Future Contract Fees

Trigger of Forced Liquidation

Contract Profit and Loss(PNL)

Future Order Type

Maker/Taker Description

How to Use CET as Transaction Fees?

What are the Differences between Spot Trading, Margin Trading and Future Contract?